1 00:00:00,840 --> 00:00:05,080 Speaker 1: From the heart of where innovation, money and power collide 2 00:00:05,400 --> 00:00:10,680 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,800 --> 00:00:12,080 Speaker 1: Caroline Hyde. 4 00:00:11,880 --> 00:00:28,640 Speaker 2: And Ed Ludlow live from New York and San Francisco. 5 00:00:28,720 --> 00:00:31,920 Speaker 2: This is Bloomberg Technology coming up. All eyes on three 6 00:00:32,040 --> 00:00:34,440 Speaker 2: trillion dollar in video as it gears up for earnings 7 00:00:34,440 --> 00:00:38,360 Speaker 2: after the closing bell. Can it profit margins weather the 8 00:00:38,479 --> 00:00:40,120 Speaker 2: Chinese export restrictions? 9 00:00:40,720 --> 00:00:43,480 Speaker 3: Plus, we speak with the CEO of identity software player 10 00:00:43,560 --> 00:00:47,559 Speaker 3: Octa following its own earnings, posting a conservative forecast, and. 11 00:00:47,560 --> 00:00:51,479 Speaker 2: A SpaceX Starship Rocket loss control and disintegrated during a 12 00:00:51,520 --> 00:00:55,280 Speaker 2: test flight last night, the company's third setback in a row, 13 00:00:55,720 --> 00:00:57,920 Speaker 2: the first ed we check in on these markets. Look 14 00:00:58,120 --> 00:01:00,760 Speaker 2: gains disintegrating here too. Are currently of by about two 15 00:01:00,760 --> 00:01:02,920 Speaker 2: tens percent. Look, we are treading water ahead of the 16 00:01:03,040 --> 00:01:05,440 Speaker 2: all important macro event. Whether you think that's the FED 17 00:01:05,520 --> 00:01:07,640 Speaker 2: minutes a little bit later today, or whether you think 18 00:01:07,640 --> 00:01:10,640 Speaker 2: that that is the all important video numbers after the bell. 19 00:01:10,800 --> 00:01:11,960 Speaker 2: We are on ten to Hook. 20 00:01:11,840 --> 00:01:14,959 Speaker 3: Said, Yeah, Nvidia's a little bit softer, right down four 21 00:01:15,000 --> 00:01:17,440 Speaker 3: tenths of one percent on a year to date basis. 22 00:01:17,440 --> 00:01:21,160 Speaker 3: It's just in positive territory, up half a percentage point. 23 00:01:21,319 --> 00:01:23,119 Speaker 4: Everyone I speak to Caro, I think. 24 00:01:23,040 --> 00:01:26,240 Speaker 3: You're right in video is a macro level event when 25 00:01:26,280 --> 00:01:29,760 Speaker 3: it comes to its earnings. So let's get right to 26 00:01:29,840 --> 00:01:33,120 Speaker 3: what we can expect from those earnings later today and 27 00:01:33,160 --> 00:01:36,640 Speaker 3: bring in Bloomberg intelligence around this. Kunjensbarni in his earnings 28 00:01:36,640 --> 00:01:42,399 Speaker 3: preview research, Kunjen says investors should expect a strong quarter 29 00:01:42,560 --> 00:01:45,319 Speaker 3: and congen. A big part of that is a ramp 30 00:01:45,319 --> 00:01:48,320 Speaker 3: in GB two hundred and where those GB two hundred 31 00:01:48,400 --> 00:01:49,000 Speaker 3: units are. 32 00:01:48,840 --> 00:01:52,560 Speaker 5: Going definitely, I mean the demand expedition for GB two 33 00:01:52,680 --> 00:01:55,800 Speaker 5: hundred from our channel checks continue to exceed what we 34 00:01:55,920 --> 00:01:59,480 Speaker 5: thought before. And one key important point for this earnings 35 00:01:59,680 --> 00:02:02,440 Speaker 5: is this is the most noisiest quarter we have seen 36 00:02:02,480 --> 00:02:05,360 Speaker 5: in terms of Nvidia expectations. The two Q numbers have 37 00:02:05,440 --> 00:02:08,040 Speaker 5: been brought down to take that impact of the China ban, 38 00:02:08,360 --> 00:02:10,839 Speaker 5: but there is still a lot of confusion on that magnitude. 39 00:02:10,960 --> 00:02:12,240 Speaker 4: So we think the beat. 40 00:02:12,000 --> 00:02:14,520 Speaker 5: And the miss on the absolute basis for this quarter 41 00:02:14,760 --> 00:02:17,880 Speaker 5: should be much less important. Rather, the more important thing 42 00:02:17,919 --> 00:02:20,520 Speaker 5: should be the second half commentary around the GB three 43 00:02:20,560 --> 00:02:23,600 Speaker 5: hundred transition, the clarity on the new China chip, and 44 00:02:23,800 --> 00:02:25,960 Speaker 5: if bonus points if you can get some color on 45 00:02:26,000 --> 00:02:27,520 Speaker 5: the twenty six dey Man outlook from. 46 00:02:27,440 --> 00:02:31,000 Speaker 2: Jensen and from collect Chris, the CFO. How much do 47 00:02:31,000 --> 00:02:34,320 Speaker 2: you need to hear from her about the margins going 48 00:02:34,360 --> 00:02:36,519 Speaker 2: back to a seventy percent or so level at the 49 00:02:36,560 --> 00:02:38,519 Speaker 2: moment because they have been under pressure congent. 50 00:02:39,360 --> 00:02:40,880 Speaker 5: That will be a lot more important. 51 00:02:41,040 --> 00:02:42,760 Speaker 4: We think margin will take. 52 00:02:42,560 --> 00:02:45,960 Speaker 5: A headwind impact just like AMD did in either this. 53 00:02:45,960 --> 00:02:48,120 Speaker 4: Quarter or next quarter, but that should be just. 54 00:02:48,080 --> 00:02:49,679 Speaker 5: A one time, temporary impact. 55 00:02:49,880 --> 00:02:50,600 Speaker 6: But you're right. 56 00:02:51,280 --> 00:02:53,680 Speaker 5: If they can give any commentary in the confidence of 57 00:02:53,760 --> 00:02:57,040 Speaker 5: getting back to the mid or even low seventies by 58 00:02:57,120 --> 00:03:00,000 Speaker 5: Q four, that would be absolutely positive. 59 00:03:00,360 --> 00:03:02,079 Speaker 2: It's going to be busy. Well, thank you so much 60 00:03:02,080 --> 00:03:05,480 Speaker 2: for Bluemergis Intelligence. Let's discuss now in Video's expectations and 61 00:03:05,480 --> 00:03:08,000 Speaker 2: how they fit in with the broader market. The macro perspective. 62 00:03:08,440 --> 00:03:11,920 Speaker 2: Oka Yeshioka joins usport Hodio, consulting director at Wealth Enhancement Group, 63 00:03:12,120 --> 00:03:15,040 Speaker 2: and look, this is a macro event. How do you 64 00:03:15,120 --> 00:03:17,680 Speaker 2: manage what Kunjan has clearly said is going to be 65 00:03:17,760 --> 00:03:20,280 Speaker 2: noise on the first footing of the numbers. 66 00:03:21,520 --> 00:03:24,119 Speaker 7: Sure, Caroline, I think you know we put this into 67 00:03:24,280 --> 00:03:26,920 Speaker 7: short term versus long term context. I think in the 68 00:03:26,960 --> 00:03:30,040 Speaker 7: short term, yes, we might have a noisy quarter and 69 00:03:30,200 --> 00:03:33,880 Speaker 7: maybe this does not allow Nvidia stock to break out 70 00:03:33,919 --> 00:03:36,480 Speaker 7: of its sort of one hundred to one fifty range 71 00:03:36,520 --> 00:03:38,680 Speaker 7: that it's been in over the last year. But I 72 00:03:38,720 --> 00:03:40,760 Speaker 7: think over the long term, I think what we're all 73 00:03:40,800 --> 00:03:44,280 Speaker 7: looking for is that macro impact of the AI theme. 74 00:03:44,880 --> 00:03:46,040 Speaker 7: Is it going to continue? 75 00:03:46,240 --> 00:03:47,480 Speaker 2: Is the demand really there? 76 00:03:47,520 --> 00:03:49,360 Speaker 7: And I think the answer is going to be yes. 77 00:03:50,080 --> 00:03:52,360 Speaker 3: In the short term and the long term. For me, 78 00:03:53,400 --> 00:03:56,040 Speaker 3: the question is what happens for Nvidia in China. 79 00:03:58,400 --> 00:04:01,440 Speaker 7: Absolutely, I think you know, everybody's aware of the H 80 00:04:01,560 --> 00:04:04,760 Speaker 7: twenty export ban and whether or not, you know, in 81 00:04:04,920 --> 00:04:08,040 Speaker 7: Video is going to potentially come up with a sort 82 00:04:08,040 --> 00:04:11,920 Speaker 7: of new redesigned chip for that market. I think they're 83 00:04:12,280 --> 00:04:14,800 Speaker 7: likely to work on it. They've done it before, and 84 00:04:14,880 --> 00:04:16,719 Speaker 7: I think that's going to help. But that's the big 85 00:04:16,800 --> 00:04:19,719 Speaker 7: question is what is China revenue going to look like 86 00:04:19,880 --> 00:04:22,160 Speaker 7: for in Nvidia over the next six months as well 87 00:04:22,160 --> 00:04:23,160 Speaker 7: as next year. 88 00:04:24,600 --> 00:04:27,359 Speaker 2: And ioko what's notable is ed sat at the top. 89 00:04:27,839 --> 00:04:29,440 Speaker 2: This is a stop thing. Yes, you can see is 90 00:04:29,440 --> 00:04:33,040 Speaker 2: rebounded hard since it's loads in April forty percent were 91 00:04:33,080 --> 00:04:36,880 Speaker 2: basically flat on the air and so how are we 92 00:04:36,920 --> 00:04:42,120 Speaker 2: thinking about the AI trade more broadly at this moment geopolitics? 93 00:04:42,160 --> 00:04:45,280 Speaker 2: Does that counter what has been the bubble driver of 94 00:04:45,320 --> 00:04:46,359 Speaker 2: the last couple of years. 95 00:04:47,800 --> 00:04:50,520 Speaker 7: Yeah, I don't know if geopolitics really counters it. I mean, 96 00:04:50,520 --> 00:04:54,520 Speaker 7: clearly the tear off situation is weighing on a lot 97 00:04:54,560 --> 00:04:58,800 Speaker 7: of tech companies as well, and so I think it's 98 00:04:58,920 --> 00:05:01,840 Speaker 7: contributing to a lot of the noise that we're seeing here. 99 00:05:02,279 --> 00:05:04,000 Speaker 7: But I think over the long term, we know that 100 00:05:04,080 --> 00:05:09,080 Speaker 7: the build out for the infrastructure for AI continues, and 101 00:05:09,160 --> 00:05:11,200 Speaker 7: you know, in video continues to benefit from that. 102 00:05:11,680 --> 00:05:14,080 Speaker 2: We've already heard a lot about that boy the Middle 103 00:05:14,120 --> 00:05:17,719 Speaker 2: East deals, Saudi Arabia, UAE. What more can Jensen deliver 104 00:05:17,800 --> 00:05:18,400 Speaker 2: for you today? 105 00:05:20,120 --> 00:05:23,520 Speaker 7: I think just the overall outlook regarding you know, additional 106 00:05:23,640 --> 00:05:26,440 Speaker 7: use cases. How much are you know, in Videa's chips 107 00:05:26,480 --> 00:05:31,720 Speaker 7: going to be utilized in robotaxis and you know, humanoid robotics. 108 00:05:32,000 --> 00:05:35,560 Speaker 7: You know, I think those are additional areas of growth 109 00:05:35,960 --> 00:05:39,160 Speaker 7: that can continue to propel in video stock hire over 110 00:05:39,200 --> 00:05:41,400 Speaker 7: the long term. 111 00:05:41,440 --> 00:05:43,640 Speaker 3: What is this like for you is a moment in 112 00:05:43,720 --> 00:05:45,640 Speaker 3: time as an investor, like I'm trying to think about 113 00:05:45,640 --> 00:05:48,640 Speaker 3: something that's analogous and for me the Earnings call it's 114 00:05:48,680 --> 00:05:51,120 Speaker 3: a little bit like Tesla and Elon in that you 115 00:05:51,240 --> 00:05:53,440 Speaker 3: get the Earnings release and you read through it and 116 00:05:53,440 --> 00:05:55,960 Speaker 3: you think okay, and then there's a pre prepared remarks, 117 00:05:55,960 --> 00:05:57,520 Speaker 3: But actually it all kind of hangs on the Q 118 00:05:57,680 --> 00:06:00,760 Speaker 3: and A and this man called Jensen, who people call 119 00:06:00,800 --> 00:06:03,960 Speaker 3: the godfather of AI and some people call him something different. 120 00:06:04,400 --> 00:06:08,080 Speaker 4: Just when you're at your desk, how do you endure that? 121 00:06:08,200 --> 00:06:09,200 Speaker 4: How do you play it? 122 00:06:10,640 --> 00:06:10,919 Speaker 8: Sure? 123 00:06:11,000 --> 00:06:13,720 Speaker 7: I think we're all listening for just you know, the 124 00:06:14,120 --> 00:06:18,400 Speaker 7: demand cues, the supply constraints, really trying to understand the 125 00:06:19,080 --> 00:06:23,479 Speaker 7: longer term sort of nature of this thematic. You know, 126 00:06:23,600 --> 00:06:27,520 Speaker 7: cloud computing was something that came about and was very 127 00:06:27,760 --> 00:06:30,719 Speaker 7: long and in duration in terms of its growth and 128 00:06:30,760 --> 00:06:35,160 Speaker 7: it continues, right, we want to know how long AI's 129 00:06:35,360 --> 00:06:38,560 Speaker 7: build out is going to continue as we transition from 130 00:06:38,720 --> 00:06:42,039 Speaker 7: you know, training to inference, and you know how long 131 00:06:42,240 --> 00:06:44,760 Speaker 7: that continues to benefit Nvidia. 132 00:06:46,880 --> 00:06:49,880 Speaker 3: Do you say any attention to the technology story, Like 133 00:06:49,920 --> 00:06:51,960 Speaker 3: if they tell you we have a new timeline for 134 00:06:52,000 --> 00:06:53,960 Speaker 3: a product, do you react to it. 135 00:06:55,880 --> 00:06:59,240 Speaker 7: Only to the extent that you know it continues to 136 00:06:59,279 --> 00:07:02,080 Speaker 7: help to prop hell the AI story I mean, I 137 00:07:02,320 --> 00:07:05,440 Speaker 7: think more so the more important things that came out 138 00:07:05,480 --> 00:07:09,160 Speaker 7: were like the you know Envy Link Fusion, uh you 139 00:07:09,160 --> 00:07:12,400 Speaker 7: know product that they talked about, just networking and allowing 140 00:07:12,440 --> 00:07:16,040 Speaker 7: for additional you know, CPUs and a six to connect 141 00:07:16,680 --> 00:07:21,000 Speaker 7: to the GPUs that that Nvidia produces. I think that 142 00:07:21,120 --> 00:07:24,920 Speaker 7: allows for the overall AI growth story to continue for 143 00:07:25,080 --> 00:07:28,880 Speaker 7: much longer, and it expands the total addressable market. So 144 00:07:29,280 --> 00:07:32,560 Speaker 7: we like hearing things like that, you know, new additional 145 00:07:32,760 --> 00:07:36,080 Speaker 7: sort of chips, you know, things that will follow, whether 146 00:07:36,120 --> 00:07:39,600 Speaker 7: it's Rubin following Blackwell, we'd like to hear how that's 147 00:07:39,640 --> 00:07:43,440 Speaker 7: going and the impact on margins from a timing perspective. 148 00:07:43,720 --> 00:07:46,720 Speaker 7: But the quarterly fluctuations aren't going to sort of deter 149 00:07:47,000 --> 00:07:48,360 Speaker 7: our long term thesis there. 150 00:07:48,680 --> 00:07:52,160 Speaker 2: And are you fully over the anxiety around deep Seek 151 00:07:52,200 --> 00:07:54,720 Speaker 2: because today the IR one model has been upgraded, we 152 00:07:54,840 --> 00:07:58,840 Speaker 2: understand did Jensen do enough in terms of clearly showing 153 00:07:58,880 --> 00:08:02,840 Speaker 2: the inferences where it's at TEI okay, I think so. 154 00:08:03,040 --> 00:08:06,280 Speaker 7: I think we're seeing that across you know, many sort 155 00:08:06,320 --> 00:08:10,760 Speaker 7: of uh you know, hyperscalers talking about this, and you know, 156 00:08:10,840 --> 00:08:14,160 Speaker 7: I do think that the deep Seek story, although it 157 00:08:14,240 --> 00:08:16,440 Speaker 7: was sort of jarring at the beginning. I think a 158 00:08:16,440 --> 00:08:18,680 Speaker 7: lot of that really just came out of the fact 159 00:08:18,680 --> 00:08:20,800 Speaker 7: that it came out of China. I think if it 160 00:08:20,840 --> 00:08:22,960 Speaker 7: had come out of the United States, it might not 161 00:08:23,000 --> 00:08:26,360 Speaker 7: have been as jarring. But again, you know, I think 162 00:08:26,400 --> 00:08:29,920 Speaker 7: this really just sort of expands the overall uh, you know, 163 00:08:30,200 --> 00:08:31,600 Speaker 7: addressable market. 164 00:08:32,480 --> 00:08:34,400 Speaker 3: I think the sensible place to end it on it 165 00:08:34,720 --> 00:08:37,600 Speaker 3: is a sort of chicken and egg debate. What's more 166 00:08:37,640 --> 00:08:40,199 Speaker 3: important for investors to get a long term picture on 167 00:08:40,320 --> 00:08:43,680 Speaker 3: Nvidia or the hyper scalers and their CAPEX figures, because 168 00:08:43,679 --> 00:08:45,360 Speaker 3: we've kind of done a juggle between the two. 169 00:08:46,800 --> 00:08:50,400 Speaker 7: It's a great question. I think it's the CAPPAC spend. 170 00:08:51,120 --> 00:08:53,440 Speaker 7: You know, one of the things that we continue to 171 00:08:53,520 --> 00:08:56,959 Speaker 7: monitor is the overall CAPAC spend from the hyper scalers, 172 00:08:57,000 --> 00:09:01,000 Speaker 7: and it continues to grow. The growth rate has slowed down, 173 00:09:01,040 --> 00:09:04,200 Speaker 7: and we expect that to slow down going forward, but 174 00:09:04,400 --> 00:09:08,080 Speaker 7: that spend in terms of dollars continues to be very large, 175 00:09:08,559 --> 00:09:11,520 Speaker 7: and that will propel the overall infrastructure and the speed 176 00:09:11,559 --> 00:09:13,240 Speaker 7: at which we all adopt. 177 00:09:12,880 --> 00:09:16,360 Speaker 3: Ai Jensen one would disagree with you. He'd say, I 178 00:09:16,400 --> 00:09:18,480 Speaker 3: told everyone what I'm doing for five years, so they 179 00:09:18,520 --> 00:09:22,600 Speaker 3: can make better plans. Oyoko Yoshioka, portfolio consulting director at 180 00:09:22,600 --> 00:09:23,160 Speaker 3: a wealth. 181 00:09:22,960 --> 00:09:24,480 Speaker 4: Enhancement group, thank you very much. 182 00:09:33,280 --> 00:09:36,160 Speaker 3: Octa shares down nearly fourteen percent today after the maker 183 00:09:36,200 --> 00:09:40,840 Speaker 3: of identity management software gave a conservative forecast for the futures. 184 00:09:40,880 --> 00:09:43,640 Speaker 3: Ox's first quarter revenue is up twelve percent year over year, 185 00:09:43,960 --> 00:09:47,720 Speaker 3: and subscription baglocks suggests a longer sales cycle. That's according 186 00:09:47,720 --> 00:09:51,040 Speaker 3: to our own Bloomberg analysis. We're joined now by OCTA's CEO, 187 00:09:51,440 --> 00:09:53,840 Speaker 3: Tom McKinnon. Let's get the market, Cee Bicket out the 188 00:09:53,840 --> 00:09:58,319 Speaker 3: way this conservative guide. Do you agree with the interpretation 189 00:09:58,440 --> 00:10:01,439 Speaker 3: that it's conservative, and if so, what made you be 190 00:10:01,480 --> 00:10:02,480 Speaker 3: a little more cautious. 191 00:10:02,679 --> 00:10:05,600 Speaker 8: Well, I think we're talking about guidance on very short term. 192 00:10:05,760 --> 00:10:08,880 Speaker 8: So one quarter is a very short term, and so yeah, 193 00:10:09,040 --> 00:10:10,360 Speaker 8: we would look at the world right now and we 194 00:10:10,440 --> 00:10:13,200 Speaker 8: say there's some uncertainty with tariffs and trade policy and 195 00:10:13,280 --> 00:10:16,120 Speaker 8: economic the future of the economy and the short term, 196 00:10:16,280 --> 00:10:18,400 Speaker 8: and so we give a prudent guide, but that doesn't 197 00:10:18,520 --> 00:10:21,160 Speaker 8: change our outlook for even the medium term. The long term. 198 00:10:21,240 --> 00:10:24,000 Speaker 8: We're very bullish on the opportunity, very bullish on the business. 199 00:10:24,120 --> 00:10:26,040 Speaker 8: And if you look at the Q one numbers. We 200 00:10:26,120 --> 00:10:28,240 Speaker 8: have a lot of reason to be optimistic in Q 201 00:10:28,320 --> 00:10:29,600 Speaker 8: one over the medium and long term. 202 00:10:29,640 --> 00:10:33,120 Speaker 3: We're talking about identity and access management, like that's the 203 00:10:33,160 --> 00:10:35,840 Speaker 3: field you're in. But one tailwind that I keep hearing 204 00:10:35,840 --> 00:10:39,320 Speaker 3: about is this issue of AI memory and AI agents. 205 00:10:39,320 --> 00:10:41,440 Speaker 3: In other words, if an AI agent is going to 206 00:10:41,440 --> 00:10:44,800 Speaker 3: be super useful, it needs to talk to many other agents, 207 00:10:44,840 --> 00:10:47,000 Speaker 3: but it means the person, the human at the center 208 00:10:47,040 --> 00:10:48,840 Speaker 3: of it, has to give away a lot. 209 00:10:48,760 --> 00:10:49,520 Speaker 4: Of their information. 210 00:10:50,000 --> 00:10:52,040 Speaker 3: That may be an area where you come in and 211 00:10:52,080 --> 00:10:53,760 Speaker 3: make it more secure. 212 00:10:54,120 --> 00:10:55,680 Speaker 4: Is there an opportunity to Well, what. 213 00:10:55,640 --> 00:10:58,320 Speaker 8: Identity and access management is about is making sure the 214 00:10:58,360 --> 00:11:00,880 Speaker 8: right people have access to the right information. And traditionally 215 00:11:00,880 --> 00:11:05,000 Speaker 8: that's been business applications, web applications, mobile phones, mobile applications. 216 00:11:05,280 --> 00:11:08,280 Speaker 8: And what's happening in this AI revolution is that now 217 00:11:08,480 --> 00:11:11,240 Speaker 8: machines are accessing information more and more than ever. So 218 00:11:11,280 --> 00:11:13,360 Speaker 8: it's not only about getting the people the right access, 219 00:11:13,360 --> 00:11:15,319 Speaker 8: but you have to get the computers the right access. 220 00:11:15,640 --> 00:11:16,760 Speaker 9: And we're very good at that. 221 00:11:16,800 --> 00:11:19,120 Speaker 8: We have thousands and thousands of customers that trust us 222 00:11:19,120 --> 00:11:21,440 Speaker 8: every day to make sure that their machines and their 223 00:11:22,280 --> 00:11:24,719 Speaker 8: software systems have access to the right information and now 224 00:11:24,760 --> 00:11:27,560 Speaker 8: AI is turbo charging that you're getting. We're moving in 225 00:11:27,559 --> 00:11:30,920 Speaker 8: the industry. We're moving from prototypes. Everyone's prototyping these agentic 226 00:11:31,000 --> 00:11:34,000 Speaker 8: systems and these customer support reps and these sales reps 227 00:11:34,000 --> 00:11:36,319 Speaker 8: that can work on people's behalf and they're putting them 228 00:11:36,360 --> 00:11:38,800 Speaker 8: in production and that means they have to have this 229 00:11:38,960 --> 00:11:41,920 Speaker 8: access to real customer data, real user data, and that's 230 00:11:41,960 --> 00:11:43,440 Speaker 8: where we come in. We can help them do that 231 00:11:43,480 --> 00:11:47,320 Speaker 8: seamlessly and sec securely, and most importantly, make these prototypes 232 00:11:47,360 --> 00:11:49,760 Speaker 8: of work. And that's what businesses want. They want AI 233 00:11:49,800 --> 00:11:51,400 Speaker 8: to work for them, and we can help them do that. 234 00:11:51,520 --> 00:11:53,760 Speaker 2: What about the public sector? How much do they want it? 235 00:11:53,760 --> 00:11:56,560 Speaker 2: Because I know you've secured some decent deals with them 236 00:11:56,600 --> 00:11:56,960 Speaker 2: of late. 237 00:11:57,880 --> 00:11:58,880 Speaker 6: Yeah, it's no different. 238 00:11:59,120 --> 00:12:01,360 Speaker 8: Every government agent is trying to get more efficient and 239 00:12:01,360 --> 00:12:04,040 Speaker 8: more effective with their IT and the AI revolution is 240 00:12:04,080 --> 00:12:06,520 Speaker 8: part of that. In fact, in Q one, four of 241 00:12:06,520 --> 00:12:09,240 Speaker 8: our top ten deals were with public sector agency, so 242 00:12:09,240 --> 00:12:11,880 Speaker 8: we're seeing very robust demand there and it's for the 243 00:12:11,920 --> 00:12:14,440 Speaker 8: same reason they need to be secure. Our business is 244 00:12:14,440 --> 00:12:17,160 Speaker 8: about identity, and what people are understanding is that identity 245 00:12:17,240 --> 00:12:17,800 Speaker 8: is security. 246 00:12:17,800 --> 00:12:19,240 Speaker 4: To be secure, you have to have a good. 247 00:12:19,120 --> 00:12:21,320 Speaker 8: Identity system and then when you start to do the 248 00:12:21,360 --> 00:12:25,959 Speaker 8: agentic workloads and move these projects from prototypes and proofs 249 00:12:25,960 --> 00:12:29,160 Speaker 8: of concepts into production, you really have to control access 250 00:12:29,160 --> 00:12:30,760 Speaker 8: to the data. And that's what our customers are telling 251 00:12:30,840 --> 00:12:31,640 Speaker 8: us we can do for them. 252 00:12:31,800 --> 00:12:35,040 Speaker 2: And of course the drive for DOZE for efficiency was 253 00:12:35,080 --> 00:12:38,320 Speaker 2: about tech adoption, but it is also about cost cutting. 254 00:12:38,520 --> 00:12:40,640 Speaker 2: How much do you think that there is this head wind, 255 00:12:40,679 --> 00:12:44,040 Speaker 2: this caution around well, maybe a pushback on some of 256 00:12:44,040 --> 00:12:45,880 Speaker 2: the contracts that you have within the public sector. 257 00:12:46,840 --> 00:12:48,959 Speaker 8: Well, like I said, four of our top ten deals 258 00:12:48,960 --> 00:12:50,439 Speaker 8: and two of the top three deals in the Q 259 00:12:50,520 --> 00:12:52,960 Speaker 8: one we're in the public sector. So what you're seeing, 260 00:12:53,000 --> 00:12:56,360 Speaker 8: especially at the US federal level, is organizations are looking 261 00:12:56,400 --> 00:12:59,120 Speaker 8: to be more efficient and more effective, and that means 262 00:12:59,200 --> 00:13:01,560 Speaker 8: looking at all their spending. But most of their spending 263 00:13:01,640 --> 00:13:05,680 Speaker 8: is on legacy technology, so they're managing on premise software 264 00:13:05,840 --> 00:13:09,040 Speaker 8: and their pain massive bills to people to support and 265 00:13:09,080 --> 00:13:13,000 Speaker 8: maintain that software. And the industry of cloud computing and 266 00:13:13,080 --> 00:13:17,800 Speaker 8: AI offers a viable alternative, and inside of that is 267 00:13:17,840 --> 00:13:20,240 Speaker 8: the key layer in security and managing it. So if 268 00:13:20,280 --> 00:13:23,320 Speaker 8: you want security and you want efficiency, we're a required 269 00:13:23,360 --> 00:13:25,160 Speaker 8: thing and that's what's driving some of the success in 270 00:13:25,240 --> 00:13:25,679 Speaker 8: that part of. 271 00:13:25,600 --> 00:13:26,280 Speaker 9: The market for US. 272 00:13:26,880 --> 00:13:30,439 Speaker 3: Octa has been trading for several years as a public company. 273 00:13:30,679 --> 00:13:33,240 Speaker 3: When was it founded just very quickly two thousand and nine. 274 00:13:33,480 --> 00:13:35,880 Speaker 3: He just talks about legacy tech. Could you just talk 275 00:13:35,920 --> 00:13:37,840 Speaker 3: a little bit about what doing business is like in 276 00:13:37,880 --> 00:13:40,240 Speaker 3: this environment? So there are lots of new names in 277 00:13:40,280 --> 00:13:42,760 Speaker 3: this field. There are lots of new names who want 278 00:13:42,800 --> 00:13:45,480 Speaker 3: to be your customers, and they're kind of used to 279 00:13:45,679 --> 00:13:48,200 Speaker 3: negotiating with other people they may or may not know 280 00:13:48,559 --> 00:13:51,760 Speaker 3: in this sort of Silicon Valley orbit. You've been around 281 00:13:51,800 --> 00:13:53,480 Speaker 3: a little longer, and I just wonder what that's like. 282 00:13:53,679 --> 00:13:56,200 Speaker 8: Well, I think the most exciting thing about the current 283 00:13:56,600 --> 00:13:59,640 Speaker 8: age of technology is that we are very established. 284 00:13:59,679 --> 00:14:02,559 Speaker 4: We have two point six. 285 00:14:02,440 --> 00:14:05,920 Speaker 8: Billion dollars of revenue and growing quickly, and we're very profitable. 286 00:14:06,080 --> 00:14:08,679 Speaker 8: In fact, in Q one we had record profitability. So 287 00:14:08,720 --> 00:14:11,440 Speaker 8: in our space, we are the clear leader our space 288 00:14:11,440 --> 00:14:14,720 Speaker 8: of independent and neutral identity management. And now there's this 289 00:14:14,800 --> 00:14:18,600 Speaker 8: AI revolution and it's opening up vast new markets for 290 00:14:18,679 --> 00:14:21,440 Speaker 8: every technology company. So it's like, how do you defend 291 00:14:21,480 --> 00:14:23,280 Speaker 8: what you've done very well while at the same time 292 00:14:23,360 --> 00:14:25,600 Speaker 8: investing for the future and innovating to making sure you 293 00:14:25,640 --> 00:14:29,760 Speaker 8: capture this massive new opportunity. It's quite exciting, but it 294 00:14:29,800 --> 00:14:33,280 Speaker 8: makes us really double down and stick to our past 295 00:14:33,360 --> 00:14:35,720 Speaker 8: history of innovation and defining the market and extending what 296 00:14:35,760 --> 00:14:37,160 Speaker 8: we've done into this whole new world. 297 00:14:37,440 --> 00:14:41,040 Speaker 3: At the top of the segment, we reference subscription backlogs. 298 00:14:41,560 --> 00:14:45,040 Speaker 3: Why is there a backlog and how does it get unfolded? 299 00:14:45,240 --> 00:14:48,160 Speaker 8: Well, we're a cloud service, so people pay us a 300 00:14:48,240 --> 00:14:52,440 Speaker 8: recurring subscription, so we prove value to them and they 301 00:14:52,600 --> 00:14:55,720 Speaker 8: reinvest in us over a period of the contract duration. 302 00:14:56,120 --> 00:14:58,080 Speaker 8: That's the way business works now, and it's a good 303 00:14:58,120 --> 00:15:00,800 Speaker 8: trade off between value delivered to the customer and a 304 00:15:00,880 --> 00:15:03,600 Speaker 8: vendor like us being able to capture that value we deliver. 305 00:15:04,520 --> 00:15:07,920 Speaker 2: Oltor CEO Tom McKinnon, we really appreciate coming on and 306 00:15:08,040 --> 00:15:10,800 Speaker 2: talking back against perhaps some of the narratives around the 307 00:15:10,840 --> 00:15:22,320 Speaker 2: DOGE issues. Apple set to release a dedicated gaming app 308 00:15:22,320 --> 00:15:25,280 Speaker 2: across its devices later this year. It's all according to sources. 309 00:15:25,320 --> 00:15:27,520 Speaker 2: The feature is set to debut at this year's Worldwide 310 00:15:27,520 --> 00:15:30,960 Speaker 2: Developers Conference on June ninth, just a few days after 311 00:15:31,040 --> 00:15:34,680 Speaker 2: Nintendo's switched to release from All. Bloomberg's Mark Gunman joins 312 00:15:34,760 --> 00:15:38,560 Speaker 2: us now and is this defense? Is this offense, Mark. 313 00:15:39,520 --> 00:15:41,240 Speaker 6: Ye, thank you for having me. Apple has been working 314 00:15:41,240 --> 00:15:42,640 Speaker 6: on this for quite some time. 315 00:15:42,800 --> 00:15:45,800 Speaker 10: Over the past few years, they've been trying to push 316 00:15:45,920 --> 00:15:50,600 Speaker 10: iOS and mac os as better gaming platforms, and you know, 317 00:15:50,720 --> 00:15:52,480 Speaker 10: the Mac has come a long way. There are new 318 00:15:52,520 --> 00:15:56,040 Speaker 10: porting tools for developers to move their apps over from 319 00:15:56,120 --> 00:15:59,280 Speaker 10: PC to Mac, but there's still a long way to go. 320 00:15:59,560 --> 00:16:03,200 Speaker 10: You've seen all sorts of different cloud gaming services and 321 00:16:03,360 --> 00:16:06,080 Speaker 10: on device gaming services over the last few years. 322 00:16:06,200 --> 00:16:07,560 Speaker 6: You've seen some from Google. 323 00:16:07,960 --> 00:16:10,440 Speaker 10: Microsoft has tried this, and what Apple's trying to do 324 00:16:10,520 --> 00:16:15,000 Speaker 10: with this app is create one unified place where developers. 325 00:16:14,400 --> 00:16:17,240 Speaker 6: Can pitch their apps with new editorial. 326 00:16:16,760 --> 00:16:21,200 Speaker 10: Content, a unified place for gamers on all of Apple's 327 00:16:21,200 --> 00:16:23,560 Speaker 10: devices to go to when they want to launch a game, 328 00:16:24,200 --> 00:16:27,840 Speaker 10: view achievements, view leader boards, connect with other players online. 329 00:16:27,880 --> 00:16:31,120 Speaker 10: And so this new service is Apple Games application that 330 00:16:31,120 --> 00:16:33,280 Speaker 10: will be pre installed on Apple's devices beginning at the 331 00:16:33,360 --> 00:16:35,560 Speaker 10: end of this year, will be that new place to 332 00:16:35,600 --> 00:16:36,800 Speaker 10: do so. 333 00:16:36,880 --> 00:16:41,360 Speaker 3: Mark I've struggled for many years with gaming through macOS. 334 00:16:41,920 --> 00:16:43,080 Speaker 4: I find this so interesting. 335 00:16:43,680 --> 00:16:47,200 Speaker 3: On the titles themselves, we're not saying though, that Apple 336 00:16:47,720 --> 00:16:50,400 Speaker 3: is going to become a developer and publisher of games 337 00:16:50,400 --> 00:16:52,840 Speaker 3: specific to its own net platform, right, it is still 338 00:16:52,880 --> 00:16:59,000 Speaker 3: a marketplace and a way to monetize access through other people's. 339 00:16:57,920 --> 00:16:59,040 Speaker 4: Software and titles. 340 00:17:00,240 --> 00:17:05,199 Speaker 10: Apple bought a two person game studio. I believe the 341 00:17:05,240 --> 00:17:08,480 Speaker 10: app is called Sneaky Sasquatch. It's one of the more 342 00:17:08,520 --> 00:17:11,680 Speaker 10: popular games on the Apple Arcade subscription service, So they 343 00:17:11,760 --> 00:17:15,200 Speaker 10: bought that. But I don't anticipate them to go a 344 00:17:15,240 --> 00:17:18,199 Speaker 10: lot further than that in terms of in house games. 345 00:17:18,280 --> 00:17:21,359 Speaker 10: Maybe they'll buy a few other smaller studios, but I 346 00:17:21,400 --> 00:17:24,640 Speaker 10: don't anticipate them to go down the route of developing 347 00:17:24,920 --> 00:17:28,480 Speaker 10: their own games, investing billions of dollars into that. What 348 00:17:28,560 --> 00:17:31,320 Speaker 10: I do expect is for this new games app on 349 00:17:31,400 --> 00:17:34,600 Speaker 10: Apple devices to be a central way where people access games. 350 00:17:34,960 --> 00:17:37,560 Speaker 10: You know, two thirds of Apple revenue from the app store, 351 00:17:37,640 --> 00:17:41,639 Speaker 10: probably north of twelve thirteen billion dollars a year, comes 352 00:17:41,640 --> 00:17:43,600 Speaker 10: from games, So games is super important. 353 00:17:43,640 --> 00:17:44,880 Speaker 6: They want people playing more. 354 00:17:44,720 --> 00:17:47,080 Speaker 10: Games, they want people downloading more games, they want people 355 00:17:47,080 --> 00:17:50,240 Speaker 10: buying more subscriptions within games, and having a unified place 356 00:17:50,520 --> 00:17:54,720 Speaker 10: to access all those titles could potentially help with that. 357 00:17:55,280 --> 00:17:57,800 Speaker 2: Gaming is important to Apple's business model, But how important 358 00:17:57,800 --> 00:18:00,680 Speaker 2: is Apple to the gaming industry? What sort of market 359 00:18:00,680 --> 00:18:02,440 Speaker 2: share does it have give us the context mark? 360 00:18:03,400 --> 00:18:05,840 Speaker 10: You know, if you think about it, the iPhone is 361 00:18:05,840 --> 00:18:08,119 Speaker 10: probably the most popular gaming device. 362 00:18:07,960 --> 00:18:08,640 Speaker 6: On the planet. 363 00:18:08,800 --> 00:18:12,879 Speaker 10: You can now get TRIPLEA titles on their resident Evil 364 00:18:13,119 --> 00:18:17,119 Speaker 10: Fortnite is back on the app store now after a 365 00:18:17,160 --> 00:18:21,840 Speaker 10: few year reprieve after that lawsuit hit new levels with the. 366 00:18:24,280 --> 00:18:27,520 Speaker 3: Well technically jump in here, Carro, because I think we 367 00:18:27,560 --> 00:18:30,399 Speaker 3: had a technical issue on Bloomberg technology, but thanks to 368 00:18:30,400 --> 00:18:33,680 Speaker 3: Bloomberg's Mark German, another story we're tracking. YouTube has spent 369 00:18:33,760 --> 00:18:36,880 Speaker 3: the past few years trying to make itself the centerpiece 370 00:18:37,160 --> 00:18:40,280 Speaker 3: of the living room, and now creators are finding themselves 371 00:18:40,280 --> 00:18:43,320 Speaker 3: making longer shows to meet viewers where they are in 372 00:18:43,359 --> 00:18:46,080 Speaker 3: front of their TVs, where YouTube is now the TV 373 00:18:46,240 --> 00:18:48,600 Speaker 3: service of choice for viewers. 374 00:18:48,280 --> 00:18:48,960 Speaker 4: Of all ages. 375 00:18:48,960 --> 00:18:51,920 Speaker 3: Bloombergs Lucashaw is here for more in his BusinessWeek piece 376 00:18:51,960 --> 00:18:54,399 Speaker 3: That's out there. I found this so interesting in the 377 00:18:54,440 --> 00:18:58,080 Speaker 3: context of like different genres. I think about where I 378 00:18:58,200 --> 00:19:00,960 Speaker 3: consume and what I consume on YouTube. What is the 379 00:19:01,080 --> 00:19:04,360 Speaker 3: kind of conclusion reached in this Business Week piece. 380 00:19:04,200 --> 00:19:08,879 Speaker 11: Leucas well, I think for most of YouTube's existence, people 381 00:19:08,960 --> 00:19:12,080 Speaker 11: thought of it as a short form video service that 382 00:19:12,119 --> 00:19:17,119 Speaker 11: people watched probably initially on you know, laptops and desktop computers, 383 00:19:17,359 --> 00:19:20,359 Speaker 11: then primarily mobile phones, and over the last three to 384 00:19:20,480 --> 00:19:23,040 Speaker 11: five years there's been a pretty dramatic shift where the 385 00:19:23,080 --> 00:19:26,520 Speaker 11: television is now the primary device that people use, at 386 00:19:26,600 --> 00:19:28,920 Speaker 11: least in the US and increasingly in other countries. 387 00:19:29,240 --> 00:19:30,440 Speaker 4: And as a result of that. 388 00:19:30,600 --> 00:19:32,520 Speaker 11: Or you know, a little bit of a chicken in 389 00:19:32,560 --> 00:19:35,280 Speaker 11: the egg scenario, but the length of video that people 390 00:19:35,320 --> 00:19:38,040 Speaker 11: are watching is getting longer, whether that's a three hour 391 00:19:38,160 --> 00:19:42,040 Speaker 11: Jo Roken podcast or a twenty five minute sitcom, and 392 00:19:42,080 --> 00:19:44,000 Speaker 11: the latter is something that really interested me because I 393 00:19:44,080 --> 00:19:46,480 Speaker 11: also think most people think of YouTube as a place 394 00:19:46,560 --> 00:19:51,080 Speaker 11: for sort of crappy, unscripted stuff, and increasingly there is 395 00:19:51,119 --> 00:19:53,360 Speaker 11: scripted programming that people actually watch on YouTube. 396 00:19:53,680 --> 00:19:57,000 Speaker 2: Slopfest, that's what you say in the piece, and this 397 00:19:57,160 --> 00:20:01,320 Speaker 2: idea that it has slop that perhaps others in the 398 00:20:01,359 --> 00:20:03,920 Speaker 2: industry try to portray. But how have they pushed back 399 00:20:03,960 --> 00:20:06,640 Speaker 2: against that? How are we seeing that reverse in terms 400 00:20:06,680 --> 00:20:07,359 Speaker 2: of trends or not? 401 00:20:07,480 --> 00:20:11,000 Speaker 11: Lucas Yeah, I mean, look, there's been this ongoing debate 402 00:20:11,080 --> 00:20:14,960 Speaker 11: as to whether there is quality programming on YouTube. Right, 403 00:20:14,960 --> 00:20:18,960 Speaker 11: they had what were their brand safety scandals a little 404 00:20:19,000 --> 00:20:21,040 Speaker 11: less than a decade ago, where you had ads run 405 00:20:21,080 --> 00:20:23,800 Speaker 11: against unsafe materials, you had a lot of their biggest 406 00:20:23,840 --> 00:20:27,879 Speaker 11: stars get in trouble. You had Jeffrey Katzenberg start this 407 00:20:27,960 --> 00:20:30,400 Speaker 11: service Quibi that was supposed to be you know, YouTube, 408 00:20:30,440 --> 00:20:34,280 Speaker 11: but YouTube length videos with sort of Netflix budgets that 409 00:20:34,280 --> 00:20:36,320 Speaker 11: didn't work. And the truth is is that for most people, 410 00:20:36,320 --> 00:20:38,680 Speaker 11: what they see on YouTube is quality. You know, if 411 00:20:38,680 --> 00:20:41,920 Speaker 11: you ask someone who watches Hot Ones the chicken wing 412 00:20:41,960 --> 00:20:44,639 Speaker 11: eating question show, like that's a talk show that people 413 00:20:44,720 --> 00:20:47,360 Speaker 11: young people care about a lot more than Seth Myers, 414 00:20:47,359 --> 00:20:47,960 Speaker 11: for example. 415 00:20:49,040 --> 00:20:51,640 Speaker 3: But I do Lucas just real quick, I couldn't name 416 00:20:51,680 --> 00:20:54,720 Speaker 3: though a single YouTube original, Like I have HBO Max 417 00:20:54,720 --> 00:20:56,840 Speaker 3: because of the Last of Us. I go to Apple 418 00:20:56,880 --> 00:20:59,760 Speaker 3: TV because of Silo. And that's the reason I have 419 00:20:59,840 --> 00:21:02,480 Speaker 3: all of these different platforms and subscription bills every month. 420 00:21:02,760 --> 00:21:04,040 Speaker 4: What's YouTube doing there? 421 00:21:04,160 --> 00:21:09,560 Speaker 3: Like some name recognition programming, original programming, Well, but have. 422 00:21:09,560 --> 00:21:11,600 Speaker 4: You heard of have you heard of Hot Ones or 423 00:21:11,640 --> 00:21:12,240 Speaker 4: Mister Beast? 424 00:21:12,800 --> 00:21:16,080 Speaker 3: Yeah, yeah, it's an original last but good good example. 425 00:21:16,200 --> 00:21:19,960 Speaker 11: Right, So, look, we're not at the point where they're 426 00:21:20,000 --> 00:21:23,120 Speaker 11: making a Last of Us for YouTube. The budgets are 427 00:21:23,119 --> 00:21:24,480 Speaker 11: too big for that to make money. 428 00:21:24,520 --> 00:21:25,040 Speaker 6: On YouTube. 429 00:21:25,240 --> 00:21:27,640 Speaker 11: I think there's a belief that we may eventually get there, 430 00:21:27,680 --> 00:21:30,200 Speaker 11: certainly with the use of AI bringing the cost down. 431 00:21:30,600 --> 00:21:32,560 Speaker 11: But that is the kind of the big white whale 432 00:21:32,640 --> 00:21:35,160 Speaker 11: for YouTube. If you will, or YouTube would tell you 433 00:21:35,200 --> 00:21:37,880 Speaker 11: that you can still watch the last of us on YouTube, 434 00:21:37,920 --> 00:21:41,000 Speaker 11: you'll just do it via max and kind of buy 435 00:21:41,119 --> 00:21:44,560 Speaker 11: max as from the YouTube Google channel store the data. 436 00:21:44,760 --> 00:21:47,720 Speaker 2: It talks Loca sure, so great to have you. It's 437 00:21:47,720 --> 00:21:57,840 Speaker 2: a great business leek piece. Welcome back to BlueBag Tchnology 438 00:21:57,920 --> 00:21:58,680 Speaker 2: and Caroline. 439 00:21:58,400 --> 00:22:01,359 Speaker 3: Hide in New York Low in San Francisco. This is 440 00:22:01,400 --> 00:22:04,119 Speaker 3: what financial markets look right now, zeroed in on the 441 00:22:04,160 --> 00:22:05,200 Speaker 3: technology sector. 442 00:22:05,840 --> 00:22:06,960 Speaker 4: We are basically, as. 443 00:22:06,840 --> 00:22:08,720 Speaker 3: Caroline said at the top of the show, treading water. 444 00:22:08,800 --> 00:22:11,639 Speaker 3: Were flat on the Nasdaq one hundred. We're slightly softer 445 00:22:11,720 --> 00:22:15,520 Speaker 3: on the Philadelphia Semiconductor Index. And that story is almost 446 00:22:15,560 --> 00:22:19,439 Speaker 3: solely in Nvidia, which reports earnings after the market close. 447 00:22:19,840 --> 00:22:23,000 Speaker 3: It's a stock that is treading water right now, completely 448 00:22:23,040 --> 00:22:25,720 Speaker 3: flat on a year to date basis. It is higher, 449 00:22:26,080 --> 00:22:29,080 Speaker 3: but marginally less than one percentage point. 450 00:22:29,240 --> 00:22:30,840 Speaker 4: And what we're looking for. 451 00:22:31,000 --> 00:22:34,800 Speaker 3: Is some sense in the short term the China story, 452 00:22:34,840 --> 00:22:36,200 Speaker 3: how have sales been impacted? 453 00:22:36,240 --> 00:22:38,280 Speaker 4: Remember a five point five billion. 454 00:22:38,080 --> 00:22:41,560 Speaker 3: Dollar right down in the quarter gone relating to the 455 00:22:41,640 --> 00:22:43,680 Speaker 3: lack of being able to sell age twenty. What does 456 00:22:43,680 --> 00:22:45,720 Speaker 3: that look like going forward, Gareth, It's. 457 00:22:45,560 --> 00:22:47,360 Speaker 2: Going to be an interesting one. And as you say, 458 00:22:47,400 --> 00:22:50,680 Speaker 2: like all eyes on that report tonight, but that attention 459 00:22:50,840 --> 00:22:53,320 Speaker 2: is actually spilling over to others in the AI supply 460 00:22:53,440 --> 00:22:57,280 Speaker 2: chain head including Napatas Semiconductor, a maker of power efficient 461 00:22:57,320 --> 00:23:00,680 Speaker 2: gallium nitride chips that go into everything from laptop to evs, 462 00:23:00,760 --> 00:23:04,120 Speaker 2: and now data centers. Last week, news of a partnership 463 00:23:04,160 --> 00:23:06,840 Speaker 2: with NVIDIAs and Navatas shares absolutely soaring one hundred and 464 00:23:06,840 --> 00:23:10,200 Speaker 2: sixty four percent in a single day. Since then added 465 00:23:10,240 --> 00:23:12,560 Speaker 2: more than a billion dollars in market value, tripling its 466 00:23:12,560 --> 00:23:15,280 Speaker 2: size as the rally continues, and Navta CEO Gen Sheridan 467 00:23:15,600 --> 00:23:20,680 Speaker 2: joins US now gallium nitride silicon carbide. How is it 468 00:23:20,920 --> 00:23:22,800 Speaker 2: going to change the world of data centers? 469 00:23:24,320 --> 00:23:27,800 Speaker 12: Good question, Well, data centers are completely changing the world 470 00:23:27,840 --> 00:23:29,959 Speaker 12: as we know it. It used to be data centers 471 00:23:30,080 --> 00:23:33,600 Speaker 12: required just a few hundred watts per processor or ten 472 00:23:33,640 --> 00:23:36,199 Speaker 12: to twenty thousand bots in a server rack. That's the 473 00:23:36,240 --> 00:23:40,000 Speaker 12: building block of a data center. AI is changing that completely. 474 00:23:40,040 --> 00:23:43,080 Speaker 12: We're now talking about hundreds of thousands of watts and 475 00:23:43,119 --> 00:23:46,480 Speaker 12: in the future of megawatt per server rack, how are 476 00:23:46,520 --> 00:23:48,720 Speaker 12: we going to deliver that kind of power? Silicon chips 477 00:23:49,000 --> 00:23:51,520 Speaker 12: just can't do it, they run out of steam. Gallium 478 00:23:51,600 --> 00:23:54,439 Speaker 12: nitride and silicon carbide can offer up to ten to 479 00:23:54,560 --> 00:23:57,720 Speaker 12: twenty times more power and do it more energy efficiently 480 00:23:57,800 --> 00:24:01,679 Speaker 12: with faster charging, faster power. These are the key technology 481 00:24:01,760 --> 00:24:04,280 Speaker 12: chips to power the future data center and. 482 00:24:04,320 --> 00:24:07,760 Speaker 2: Gene, as we mentioned, been selected by in video for 483 00:24:07,800 --> 00:24:10,920 Speaker 2: this partnership. Going forward, how's your supply chain? How's your 484 00:24:10,920 --> 00:24:13,200 Speaker 2: ability to suddenly meet this level of demand. 485 00:24:14,280 --> 00:24:17,439 Speaker 12: We have lined up significant capacity. We've seen this coming 486 00:24:17,800 --> 00:24:20,359 Speaker 12: for the last few years. We've been working on gallium 487 00:24:20,440 --> 00:24:23,000 Speaker 12: nitride and solding garbage for over ten years. We have 488 00:24:23,160 --> 00:24:27,120 Speaker 12: excellent supply chain partners TSMC with gallium nitride, x FAB 489 00:24:27,119 --> 00:24:30,920 Speaker 12: with Silding carbide. Significant capacity available today in six inch, 490 00:24:31,040 --> 00:24:33,520 Speaker 12: going to eight inch in the coming years. So we've 491 00:24:33,560 --> 00:24:35,000 Speaker 12: got a lot of capacity lined up. 492 00:24:35,359 --> 00:24:37,480 Speaker 9: Now. We're working with Nvidia on the development side. 493 00:24:37,480 --> 00:24:39,359 Speaker 12: There's a lot to do in development to enable what 494 00:24:39,400 --> 00:24:42,800 Speaker 12: they call the eight hundred volt data center. This data 495 00:24:42,840 --> 00:24:46,080 Speaker 12: center architecture is not only going to save energy, use. 496 00:24:45,920 --> 00:24:47,560 Speaker 9: Our tip to make it more energy efficient. 497 00:24:47,760 --> 00:24:51,399 Speaker 12: It's going to enable that megawatt capability to ten twenty 498 00:24:51,440 --> 00:24:54,520 Speaker 12: times more powerful to held the future AI processors for 499 00:24:54,560 --> 00:24:55,679 Speaker 12: the next few years. 500 00:24:56,400 --> 00:24:58,920 Speaker 3: Gene, Your company's stock has been on a wild ride, 501 00:24:59,080 --> 00:25:02,600 Speaker 3: hasn't it since the announcement of the deal, largely by 502 00:25:02,600 --> 00:25:05,920 Speaker 3: association probably right with the name in Nvidia. But can 503 00:25:05,920 --> 00:25:08,800 Speaker 3: you give us something tangible, like what's the dollar value 504 00:25:08,840 --> 00:25:12,320 Speaker 3: of this relationship to Navitas? What's this sort of sales 505 00:25:12,359 --> 00:25:15,200 Speaker 3: growth trajectory just from the agreement you put in place 506 00:25:15,240 --> 00:25:16,840 Speaker 3: with in Vidia. 507 00:25:16,920 --> 00:25:19,879 Speaker 12: Well, we're already shipping our high voltage GAN chips and 508 00:25:19,920 --> 00:25:22,840 Speaker 12: sling CARBA chips into data centers today. We have about 509 00:25:22,880 --> 00:25:26,400 Speaker 12: seventy opportunities in the acd DC converter for the traditional 510 00:25:26,480 --> 00:25:29,160 Speaker 12: data center of today. That's sort of growth and that's 511 00:25:29,200 --> 00:25:31,240 Speaker 12: going to drive some short term growth to the company. 512 00:25:31,600 --> 00:25:34,199 Speaker 12: But this announcement is really about tomorrow. We're going to 513 00:25:34,200 --> 00:25:37,159 Speaker 12: spend the next year in development within Vidia and others 514 00:25:37,440 --> 00:25:40,120 Speaker 12: creating the key technology or building box for this eight 515 00:25:40,240 --> 00:25:44,920 Speaker 12: hundred data center, this megawatt SERVERAC power. These systems won't 516 00:25:44,960 --> 00:25:47,760 Speaker 12: come online until maybe late twenty six and really be 517 00:25:47,880 --> 00:25:51,000 Speaker 12: ramping in twenty seven, so it's not a short term play. Well, 518 00:25:51,000 --> 00:25:52,960 Speaker 12: we do have solid business in the near term that 519 00:25:53,000 --> 00:25:55,800 Speaker 12: has a story, engaged with Nvidia and others, and we're 520 00:25:55,800 --> 00:25:58,720 Speaker 12: really excited about making this next generation data center happen 521 00:25:58,960 --> 00:26:00,439 Speaker 12: over the next twelve to et months. 522 00:26:01,320 --> 00:26:02,760 Speaker 3: We said at the top of the show that you've 523 00:26:02,760 --> 00:26:05,720 Speaker 3: added almost one billion dollars of market cap in the 524 00:26:05,800 --> 00:26:09,480 Speaker 3: last seven trading sessions and the company's values tripled. 525 00:26:10,000 --> 00:26:11,840 Speaker 4: Is it, CEO, what's that like for you? 526 00:26:13,480 --> 00:26:17,119 Speaker 12: Well, we went public a few years ago as an 527 00:26:17,200 --> 00:26:18,840 Speaker 12: early stage public company. 528 00:26:19,280 --> 00:26:21,040 Speaker 9: I've learned to ride the highs and. 529 00:26:21,119 --> 00:26:24,560 Speaker 12: The lows, and I get too excited about either extreme. 530 00:26:24,960 --> 00:26:26,480 Speaker 9: So I think the market's going to do what it's 531 00:26:26,480 --> 00:26:26,800 Speaker 9: going to do. 532 00:26:27,119 --> 00:26:29,679 Speaker 12: But we keep our heads down focusing on building a 533 00:26:29,720 --> 00:26:32,760 Speaker 12: great next generation paras semiconductor business. If we can keep 534 00:26:32,800 --> 00:26:35,800 Speaker 12: partnering with companies like Nvidia and key segments, data center 535 00:26:35,880 --> 00:26:37,879 Speaker 12: is a top one for us. We're also working on 536 00:26:37,920 --> 00:26:42,400 Speaker 12: mobile chargers, We're also working on electric vehicles, changing solar inverters. 537 00:26:42,840 --> 00:26:44,520 Speaker 9: Partnering up with some of these key guys, that's what 538 00:26:44,560 --> 00:26:45,320 Speaker 9: gets me excited. 539 00:26:45,359 --> 00:26:47,200 Speaker 12: That's what's going to drive our business and We're super 540 00:26:47,240 --> 00:26:49,840 Speaker 12: excited about the video one to really create these future 541 00:26:49,880 --> 00:26:50,439 Speaker 12: data centers. 542 00:26:51,160 --> 00:26:55,640 Speaker 2: Jeane, how are you navigating also the politicization of all 543 00:26:55,640 --> 00:26:58,719 Speaker 2: of this, the idea that people want US data centers, 544 00:26:58,720 --> 00:27:00,720 Speaker 2: but they're also willing to then go in partner in 545 00:27:00,720 --> 00:27:04,720 Speaker 2: the UAE in Saudi Arabia, and issues around access to 546 00:27:04,800 --> 00:27:07,560 Speaker 2: China in that way, how you thinking about the global 547 00:27:07,560 --> 00:27:08,359 Speaker 2: footprint you'll have. 548 00:27:09,600 --> 00:27:12,159 Speaker 12: Yeah, really is deglobalization in such a big way. I 549 00:27:12,200 --> 00:27:14,439 Speaker 12: think we're starting from a good place. Taiwan is a 550 00:27:14,440 --> 00:27:17,440 Speaker 12: great central location neutral if you will, to serve the world. 551 00:27:17,520 --> 00:27:19,399 Speaker 12: TSMC is the biggest and best out there. For the 552 00:27:19,400 --> 00:27:23,480 Speaker 12: gallium nitrid chips, our slicing CARBD at XFAB, it's actually 553 00:27:23,760 --> 00:27:27,040 Speaker 12: manufactured right in the United States in Texas. There's a 554 00:27:27,080 --> 00:27:28,720 Speaker 12: lot of work to do here in the United States 555 00:27:28,760 --> 00:27:31,240 Speaker 12: to upgrade the grid, and most of the data centers 556 00:27:31,280 --> 00:27:33,720 Speaker 12: in the world are concentrated here in the US. So 557 00:27:34,280 --> 00:27:37,159 Speaker 12: made in America for at the chip level, made in 558 00:27:37,200 --> 00:27:39,160 Speaker 12: America for the data center and for the power grid 559 00:27:39,240 --> 00:27:40,920 Speaker 12: upgrades is a perfect fit. 560 00:27:41,160 --> 00:27:42,399 Speaker 9: Well, we're not not going to stop there. 561 00:27:42,440 --> 00:27:45,200 Speaker 12: We're looking at bringing up wafer PAB and manufacturing partners 562 00:27:45,240 --> 00:27:48,680 Speaker 12: all around the world, so we have geographically diverse footprint, 563 00:27:48,840 --> 00:27:51,360 Speaker 12: so we can deal with whatever the geopolitics are as 564 00:27:51,359 --> 00:27:53,320 Speaker 12: well as whatever the localization needs are. 565 00:27:53,760 --> 00:27:54,600 Speaker 9: So there's a lot to do. 566 00:27:54,600 --> 00:27:56,480 Speaker 12: In our expansion. We've got a lot going on to 567 00:27:56,480 --> 00:27:57,440 Speaker 12: expand that footprint. 568 00:27:58,480 --> 00:28:01,040 Speaker 3: Geane, you said this partnership with vide bez fruit late 569 00:28:01,080 --> 00:28:04,080 Speaker 3: twenty six early twenty twenty seven, does that mean that 570 00:28:04,119 --> 00:28:06,040 Speaker 3: you will be involved in some of the projects in 571 00:28:06,119 --> 00:28:09,399 Speaker 3: video announced in the Gulf State Saudi and UAE and 572 00:28:09,440 --> 00:28:12,480 Speaker 3: some of its onshoring activity here in the United States, 573 00:28:12,640 --> 00:28:14,560 Speaker 3: projects like Stargate for example. 574 00:28:15,760 --> 00:28:19,159 Speaker 12: Well, we'll work at the power chip and power module 575 00:28:19,200 --> 00:28:20,760 Speaker 12: or power supply level, so we create kind of these 576 00:28:20,800 --> 00:28:23,280 Speaker 12: building blocks, the building blocks that move that power around, 577 00:28:23,560 --> 00:28:26,640 Speaker 12: allow the power to happen, happen efficiently, keep the data 578 00:28:26,640 --> 00:28:29,480 Speaker 12: centers cool where they take those building blocks. The beauty 579 00:28:29,520 --> 00:28:31,520 Speaker 12: is I don't have to customize them from one region 580 00:28:31,560 --> 00:28:34,520 Speaker 12: to the next. They can build these all around the 581 00:28:34,520 --> 00:28:37,760 Speaker 12: world and they'll ship and move those ships and modules 582 00:28:38,880 --> 00:28:41,920 Speaker 12: easily without my involvement, So we don't really need to 583 00:28:41,960 --> 00:28:44,680 Speaker 12: be impacted by those international moops. 584 00:28:45,840 --> 00:28:48,040 Speaker 3: Never tast CEO Gen Sheridan, thank you so much for 585 00:28:48,120 --> 00:28:51,400 Speaker 3: joining us on Bloomberg Technology Caroline Time now for. 586 00:28:51,480 --> 00:28:54,320 Speaker 2: Talking Tech ed first up Chan is said to be 587 00:28:54,320 --> 00:28:57,880 Speaker 2: considering switching up its planned IPO offering, moving from London 588 00:28:58,000 --> 00:29:00,880 Speaker 2: to Hong Kong. That's coording to sources. The fast fashion 589 00:29:00,920 --> 00:29:03,080 Speaker 2: retailer is said to have shifted its plans because the 590 00:29:03,120 --> 00:29:06,440 Speaker 2: approved process is dragged. She initially planned a list in 591 00:29:06,480 --> 00:29:09,760 Speaker 2: the United States, but was ultimately derailed amid supply chain 592 00:29:09,800 --> 00:29:13,640 Speaker 2: and labor scrutiny. Plus, Instacart has named Chris Rogers its 593 00:29:13,680 --> 00:29:18,080 Speaker 2: new CEO, effective August fifteenth. He will replace current CEO Figisimo, 594 00:29:18,320 --> 00:29:20,480 Speaker 2: who announced earlier this month that she will leave the 595 00:29:20,520 --> 00:29:23,800 Speaker 2: company for a newly created role at OpenAI. Cimo will 596 00:29:23,840 --> 00:29:27,400 Speaker 2: remain chair of the board at instacut. And a US 597 00:29:27,520 --> 00:29:30,000 Speaker 2: district judge has ruled that Elon Musk will have to 598 00:29:30,040 --> 00:29:33,440 Speaker 2: face a lawsuit that claims that he wielded illegal power 599 00:29:33,480 --> 00:29:36,360 Speaker 2: in cutting federal jobs and spending under DOGE. Now, while 600 00:29:36,440 --> 00:29:39,080 Speaker 2: Mask has been the public face a DOGE, he's deniety 601 00:29:39,160 --> 00:29:41,960 Speaker 2: holds a formal position or has any authority to direct 602 00:29:42,000 --> 00:29:44,760 Speaker 2: agencies to carry out the President's cost cutting agenda. 603 00:29:45,240 --> 00:29:49,120 Speaker 3: ED and we stay with Elon Musk, his SpaceX Starship 604 00:29:49,200 --> 00:29:53,040 Speaker 3: rocket launched last night but exploded mid flight, marking the 605 00:29:53,160 --> 00:29:57,400 Speaker 3: third consecutive setback for the company. Still, Musk seemed enthusiastic 606 00:29:57,480 --> 00:29:59,960 Speaker 3: despite the outcome, writing on X a lot of good 607 00:30:00,160 --> 00:30:03,360 Speaker 3: data to review. Launch cadence for next three light flights 608 00:30:03,720 --> 00:30:04,440 Speaker 3: will be faster. 609 00:30:05,040 --> 00:30:05,320 Speaker 9: For more. 610 00:30:05,360 --> 00:30:08,960 Speaker 3: We're joined by Bloomberg Sana Pashankar, who was up late 611 00:30:09,480 --> 00:30:14,320 Speaker 3: covering the minute by minute of this ninth scheduled test flight. 612 00:30:14,360 --> 00:30:16,840 Speaker 4: I think it's really important rights under the context. 613 00:30:16,400 --> 00:30:19,800 Speaker 3: That the super heavy booster, as a part of the 614 00:30:19,840 --> 00:30:24,120 Speaker 3: Starship combined system, was a reflight. It had flown on 615 00:30:24,200 --> 00:30:26,760 Speaker 3: the seventh test flight. And the way that SpaceX is 616 00:30:26,760 --> 00:30:29,720 Speaker 3: always going to say is that it's success because of 617 00:30:29,760 --> 00:30:31,960 Speaker 3: the data gathered give us the kind of high level 618 00:30:31,960 --> 00:30:34,160 Speaker 3: details we need to know about mission nine. 619 00:30:36,120 --> 00:30:36,880 Speaker 2: Yeah, totally. 620 00:30:37,640 --> 00:30:41,000 Speaker 13: So essentially, you know, everything seemed to be going smoothly 621 00:30:41,040 --> 00:30:44,400 Speaker 13: at first. The giant rocket thundered off the launch pad 622 00:30:44,440 --> 00:30:49,280 Speaker 13: at around six thirty pm in Texas, but about half 623 00:30:49,280 --> 00:30:53,760 Speaker 13: an hour into the flight, the rocket experienced a leak 624 00:30:53,760 --> 00:30:58,240 Speaker 13: in its fuel taking system, which kind of caused it 625 00:30:58,400 --> 00:31:01,280 Speaker 13: to lose control and space now as it hurtled back 626 00:31:01,280 --> 00:31:04,960 Speaker 13: towards Earth's atmosphere, and at the same time, it missed 627 00:31:04,960 --> 00:31:07,800 Speaker 13: one of its key objectives, which was to deploy dummy 628 00:31:08,040 --> 00:31:13,680 Speaker 13: Starlink satellites because the door to the rocket wouldn't open 629 00:31:14,960 --> 00:31:18,720 Speaker 13: like which would release those satellites, So it did miss 630 00:31:18,720 --> 00:31:21,880 Speaker 13: that key objective. As you said, it was able to 631 00:31:22,240 --> 00:31:26,760 Speaker 13: reuse a booster from a previous flight, so as we've 632 00:31:26,800 --> 00:31:29,360 Speaker 13: seen in some previous Starship launches, they were able to 633 00:31:29,400 --> 00:31:33,800 Speaker 13: catch those boosters after the rocket launch, and so that 634 00:31:34,000 --> 00:31:36,920 Speaker 13: was using one of those previously used boosters, which was 635 00:31:36,960 --> 00:31:42,160 Speaker 13: a first for the company. However, as the rocket took off, 636 00:31:42,200 --> 00:31:45,640 Speaker 13: the booster actually ended up being lost as well and exploding, 637 00:31:46,000 --> 00:31:49,000 Speaker 13: although they weren't meant to retrieve that one to begin with. 638 00:31:49,680 --> 00:31:53,720 Speaker 13: So overall there were there was a win with the 639 00:31:53,840 --> 00:31:58,240 Speaker 13: use of the booster, but they missed a few key objectives. 640 00:31:58,360 --> 00:31:58,760 Speaker 9: I sound know. 641 00:31:58,800 --> 00:32:01,239 Speaker 2: What was interesting is we had been expecting an all 642 00:32:01,280 --> 00:32:05,640 Speaker 2: hand style talk right as well, but that seemingly didn't occur. 643 00:32:06,760 --> 00:32:09,320 Speaker 2: What are we anticipating in terms of signaling for the 644 00:32:09,360 --> 00:32:12,440 Speaker 2: next steps, when do we push forward? If they are 645 00:32:12,480 --> 00:32:14,720 Speaker 2: going to deem it in success story from what they've 646 00:32:14,760 --> 00:32:15,960 Speaker 2: at least learned on the test. 647 00:32:17,640 --> 00:32:18,240 Speaker 9: Yeah, totally. 648 00:32:18,320 --> 00:32:20,640 Speaker 13: Yeah, so we were expecting an all hand style talk 649 00:32:20,800 --> 00:32:23,760 Speaker 13: after the launch, and there was just no mention of it, 650 00:32:23,960 --> 00:32:26,440 Speaker 13: no mention of canceling it or if it would happen. 651 00:32:26,240 --> 00:32:27,040 Speaker 9: At a later date. 652 00:32:28,120 --> 00:32:33,960 Speaker 13: But yeah, so SpaceX really does emphasize this philosophy of flying, 653 00:32:34,120 --> 00:32:37,400 Speaker 13: failing and then fixing it. So that's kind of what 654 00:32:37,480 --> 00:32:41,680 Speaker 13: Musk was saying about using the data to iterate again, 655 00:32:42,040 --> 00:32:46,240 Speaker 13: make those fixes fly more. And so recently the FAA 656 00:32:46,360 --> 00:32:48,280 Speaker 13: authorized that SpaceX. 657 00:32:47,800 --> 00:32:49,400 Speaker 2: Would be able to do more launches. 658 00:32:49,800 --> 00:32:52,800 Speaker 13: So I think they're really thinking about ramping up the 659 00:32:52,840 --> 00:32:56,360 Speaker 13: launch cadence, learning more, flying more, and so we can 660 00:32:56,440 --> 00:32:58,360 Speaker 13: expect a lot more test flights in the future. 661 00:32:59,000 --> 00:33:01,280 Speaker 2: Satavashanka, we thank you very much. 662 00:33:01,280 --> 00:33:14,040 Speaker 3: Indeed, NATO has proposed including cybersecurity as part of its 663 00:33:14,080 --> 00:33:17,719 Speaker 3: new defense related spending target of one point five percent 664 00:33:18,040 --> 00:33:20,760 Speaker 3: of GDP. Here in the US this week there is 665 00:33:20,800 --> 00:33:24,280 Speaker 3: a House Committee Homeland Security field hearing on the future 666 00:33:24,640 --> 00:33:28,200 Speaker 3: of America owning the cyber space. Wendy Whitmore, Palo Alto 667 00:33:28,320 --> 00:33:32,040 Speaker 3: Networks chief security intelligence officer, is a witness at that 668 00:33:32,200 --> 00:33:34,800 Speaker 3: hearing and enjoins US NOW in San Fan Francisco. Clearly 669 00:33:34,840 --> 00:33:39,440 Speaker 3: for Western alliances, but also America, the role of cybersecurity 670 00:33:39,720 --> 00:33:43,720 Speaker 3: in the national interest in defense is more prominent. Give 671 00:33:43,760 --> 00:33:45,600 Speaker 3: me the basics of the hearing and why you have 672 00:33:45,680 --> 00:33:47,160 Speaker 3: been called as a witness to it. 673 00:33:48,080 --> 00:33:50,600 Speaker 14: Yeah, so we're excited that the hearing is happening in 674 00:33:50,640 --> 00:33:53,280 Speaker 14: Solicon Valley and the focus of the hearing today is 675 00:33:53,320 --> 00:33:57,680 Speaker 14: on technology innovation. So I think there is no organization 676 00:33:57,760 --> 00:33:59,680 Speaker 14: that's doing more of that, especially when it comes to 677 00:33:59,720 --> 00:34:02,880 Speaker 14: AI than Palo Alto Networks and will be really focused 678 00:34:02,920 --> 00:34:05,160 Speaker 14: on what is it that the government needs to do 679 00:34:05,320 --> 00:34:08,760 Speaker 14: to make security more actionable, and one of those areas 680 00:34:08,920 --> 00:34:13,600 Speaker 14: is taking technology and focusing on outcomes. So the president, 681 00:34:13,640 --> 00:34:16,680 Speaker 14: for example, should have a daily dashboard that shows civilian 682 00:34:16,719 --> 00:34:20,520 Speaker 14: federal agencies how quickly are they responding to attacks and 683 00:34:20,560 --> 00:34:24,240 Speaker 14: detecting them, and that should be as transparent as possible. 684 00:34:24,440 --> 00:34:27,480 Speaker 3: You said the president should have which indicates to me 685 00:34:27,640 --> 00:34:31,080 Speaker 3: that when in the cybersecurity context, this hearing is a 686 00:34:31,080 --> 00:34:32,240 Speaker 3: step in the right direction. 687 00:34:32,680 --> 00:34:34,160 Speaker 4: But you feel that. 688 00:34:34,160 --> 00:34:37,480 Speaker 3: The administration in our government generally can do more to 689 00:34:37,600 --> 00:34:39,520 Speaker 3: own cybersecurity on behalf of the nation. 690 00:34:40,320 --> 00:34:42,600 Speaker 14: Well, I think the challenge that I was getting at, 691 00:34:42,719 --> 00:34:47,280 Speaker 14: and it's certainly within the government, but also within civilian organizations. 692 00:34:47,760 --> 00:34:51,400 Speaker 14: Is security is too complex and visibility is not centralized. 693 00:34:51,440 --> 00:34:54,279 Speaker 14: And that's really what we're focused on is, Hey, let's 694 00:34:54,360 --> 00:34:58,680 Speaker 14: create technological capabilities that then drive these outcomes so that 695 00:34:58,680 --> 00:35:00,560 Speaker 14: those answers are clear, precise. 696 00:35:01,200 --> 00:35:04,080 Speaker 2: Wendy, that dashboard, I'm so intrigued just to what it 697 00:35:04,120 --> 00:35:07,680 Speaker 2: would show, because if I'm right, the numbers are extraordinary. 698 00:35:07,760 --> 00:35:11,960 Speaker 2: That pallel to networks blocks every day thirty one billion 699 00:35:12,160 --> 00:35:15,520 Speaker 2: cyber attacks. So what ultimately would the transparency look like? 700 00:35:17,120 --> 00:35:17,680 Speaker 9: You are right? 701 00:35:17,840 --> 00:35:20,840 Speaker 14: And one statistic that's I think even more saggering is 702 00:35:20,880 --> 00:35:23,680 Speaker 14: that up to nine million of those every day are 703 00:35:23,719 --> 00:35:26,759 Speaker 14: brand new and have never been seen before. So what 704 00:35:26,800 --> 00:35:30,200 Speaker 14: we would encourage that dashboard to look like is focused 705 00:35:30,239 --> 00:35:32,840 Speaker 14: on the time to detect and the time to respond. 706 00:35:33,239 --> 00:35:34,600 Speaker 9: We work every day. 707 00:35:34,400 --> 00:35:37,320 Speaker 14: With organizations throughout the world to drive those times down, 708 00:35:37,560 --> 00:35:40,480 Speaker 14: and in one organization we recently worked with, they took 709 00:35:40,520 --> 00:35:44,680 Speaker 14: that meantime to respond from three weeks down to nineteen minutes. 710 00:35:45,000 --> 00:35:47,359 Speaker 14: And that time matters. When you can get it down 711 00:35:47,440 --> 00:35:50,719 Speaker 14: into a number of minutes, you are now changing an 712 00:35:50,719 --> 00:35:53,879 Speaker 14: outcome because that attack can no longer be successful. 713 00:35:54,080 --> 00:35:56,759 Speaker 2: I mean the Committee on Home Land Security cools this 714 00:35:56,880 --> 00:36:03,640 Speaker 2: discussion innovation Nation technology to secure cyberspace. The innovation is 715 00:36:03,680 --> 00:36:05,560 Speaker 2: it all about AI at the moment, Wendy. 716 00:36:07,040 --> 00:36:09,120 Speaker 14: It's certainly a huge part of it. Right We at 717 00:36:09,120 --> 00:36:12,479 Speaker 14: Palaza Network spent one point eight billion dollars last year 718 00:36:12,520 --> 00:36:15,480 Speaker 14: alone in R and D, much of it focused on AI. 719 00:36:15,680 --> 00:36:18,600 Speaker 14: So we're absolutely looking at how we can use AI 720 00:36:18,680 --> 00:36:22,080 Speaker 14: to turbocharts defenses and make sure that we're driving the 721 00:36:22,120 --> 00:36:25,080 Speaker 14: time down and that organizations throughout the world are also 722 00:36:25,239 --> 00:36:26,840 Speaker 14: implementing AI securely. 723 00:36:27,200 --> 00:36:31,040 Speaker 3: In the broader theater of defense technology, we often talk 724 00:36:31,080 --> 00:36:33,560 Speaker 3: about how the private sector and public sector work together. 725 00:36:33,640 --> 00:36:37,800 Speaker 3: For example, different private organizations and reial on the hardware 726 00:36:37,840 --> 00:36:40,279 Speaker 3: side and paleteer on the software side, we'll work with 727 00:36:40,360 --> 00:36:43,840 Speaker 3: the National Defense Apparatus. How does that work in the 728 00:36:44,160 --> 00:36:47,920 Speaker 3: sort of software cybersecurity space is a coalition of private 729 00:36:47,960 --> 00:36:49,560 Speaker 3: companies and government entities. 730 00:36:50,280 --> 00:36:52,319 Speaker 14: Well, what's critical, as you point out, is that those 731 00:36:52,360 --> 00:36:55,520 Speaker 14: partnerships remain stronger than ever between the government and between 732 00:36:55,560 --> 00:36:58,919 Speaker 14: civilian organizations. And so what we're focused on is how 733 00:36:58,960 --> 00:37:02,840 Speaker 14: we can provide actionable data and insights into our government 734 00:37:02,880 --> 00:37:06,000 Speaker 14: partners and agencies to make sure that they can continue 735 00:37:06,000 --> 00:37:07,080 Speaker 14: the defense of the country. 736 00:37:07,719 --> 00:37:10,319 Speaker 2: What are the main risks that they currently fend off? 737 00:37:10,880 --> 00:37:14,360 Speaker 2: For laymen such myself, it's still phishing that seems to 738 00:37:14,400 --> 00:37:17,319 Speaker 2: be incredibly purposeful since JENAI has come on the same 739 00:37:17,360 --> 00:37:19,880 Speaker 2: But where are the threats particularly coming from in what form? 740 00:37:21,360 --> 00:37:24,240 Speaker 14: Phishing is more powerful than ever, as you mentioned, because 741 00:37:24,320 --> 00:37:29,440 Speaker 14: JENI has made JENAI has made communication capabilities even you know, 742 00:37:29,560 --> 00:37:32,160 Speaker 14: less of a barrier to entry. But you know, I 743 00:37:32,160 --> 00:37:35,080 Speaker 14: think what we're seeing our attacks from throughout the world, 744 00:37:35,160 --> 00:37:38,960 Speaker 14: certainly from our adversaries in countries like China and Russia, 745 00:37:39,000 --> 00:37:41,840 Speaker 14: that continues to occur. So we're focused on how do 746 00:37:41,880 --> 00:37:44,799 Speaker 14: we make sure organizations we work with can defend those 747 00:37:45,080 --> 00:37:48,800 Speaker 14: they can detect them within seconds ideally and then respond 748 00:37:48,840 --> 00:37:50,080 Speaker 14: and contain them within minutes. 749 00:37:50,760 --> 00:37:52,920 Speaker 3: If there is one message you want to get across 750 00:37:52,960 --> 00:37:55,520 Speaker 3: to those committee members today or that you will challenge 751 00:37:55,520 --> 00:37:57,800 Speaker 3: them on, what is it, Well. 752 00:37:57,560 --> 00:38:00,880 Speaker 14: It's an AI is a key investment areas as a 753 00:38:00,960 --> 00:38:04,560 Speaker 14: country and all of our allies to have successful defense. 754 00:38:04,840 --> 00:38:06,960 Speaker 14: So we must be able to turb our charge our 755 00:38:07,000 --> 00:38:08,960 Speaker 14: defense with technologies that fuel that. 756 00:38:09,520 --> 00:38:12,480 Speaker 2: Wendy whitmore so good to have you ahead of that testimony. 757 00:38:12,520 --> 00:38:16,120 Speaker 2: We appreciate it. Palo Alto Networks. Meanwhile, let's talk about 758 00:38:16,160 --> 00:38:18,799 Speaker 2: deep Seek said it has upgraded the R one aim 759 00:38:19,239 --> 00:38:21,960 Speaker 2: a eye moodel that it has and that of course, 760 00:38:22,000 --> 00:38:24,480 Speaker 2: helped propel the Chinese start up to global prominence earlier 761 00:38:24,480 --> 00:38:27,000 Speaker 2: this year. It described it as a quote minor trial 762 00:38:27,080 --> 00:38:29,719 Speaker 2: upgrade and told users that it can start testing it. 763 00:38:29,800 --> 00:38:32,520 Speaker 2: That's according to a company representatives post in an official 764 00:38:32,560 --> 00:38:35,160 Speaker 2: we chat group. Now, the company didn't provide details about 765 00:38:35,160 --> 00:38:42,960 Speaker 2: the upgrade and didn't respond to an email seeking further comment. 766 00:38:46,320 --> 00:38:49,520 Speaker 2: Back to earning Salesforce coming up after the closing bell today, 767 00:38:49,520 --> 00:38:52,640 Speaker 2: investors anxious for signs that customers are paying for new 768 00:38:52,680 --> 00:38:55,520 Speaker 2: AI products and looking for more details about the company's 769 00:38:55,560 --> 00:38:59,160 Speaker 2: eight billion dollar acquisition of Informatica. Now, analysts project Salesforce 770 00:38:59,200 --> 00:39:02,080 Speaker 2: revenue will increase about seven percent to nine point seventy 771 00:39:02,080 --> 00:39:04,600 Speaker 2: five billion dollars in the fiscal first quarter. At that rate, 772 00:39:04,880 --> 00:39:08,319 Speaker 2: it marked the sixth straight period of slowing sales growth. 773 00:39:08,440 --> 00:39:12,000 Speaker 3: Ed okay, Let's check back on Nvidia. The stock is 774 00:39:12,120 --> 00:39:14,920 Speaker 3: a touch higher, basically flat and treading water ahead of 775 00:39:14,920 --> 00:39:17,360 Speaker 3: the earnings being posted after the market. 776 00:39:17,760 --> 00:39:19,040 Speaker 4: Bloomosei and King is here. 777 00:39:19,080 --> 00:39:21,080 Speaker 3: Who leads our coverage of semiconductors, and I think it's 778 00:39:21,120 --> 00:39:25,280 Speaker 3: really important to clarify for Wall Street, for our audience, 779 00:39:25,400 --> 00:39:28,319 Speaker 3: and also for us here on bloe Blog Technology the 780 00:39:28,400 --> 00:39:30,279 Speaker 3: situation with regards. 781 00:39:29,800 --> 00:39:31,400 Speaker 4: To H twenty in China. 782 00:39:31,560 --> 00:39:34,520 Speaker 3: In the quarter gone April, Nvidia took a five point 783 00:39:34,600 --> 00:39:37,759 Speaker 3: five billion dollar right down on the asset or inventory 784 00:39:38,000 --> 00:39:41,000 Speaker 3: and its commitments to sell that product into China, which 785 00:39:41,040 --> 00:39:43,279 Speaker 3: it now can't sell into China. But if you look 786 00:39:43,320 --> 00:39:46,560 Speaker 3: at the estimates for the fiscal second quarter, that may 787 00:39:46,600 --> 00:39:50,520 Speaker 3: not be reflected this lost revenue opportunity because of the 788 00:39:50,600 --> 00:39:51,360 Speaker 3: China situation. 789 00:39:51,600 --> 00:39:52,680 Speaker 6: Yeah, that's absolutely right. 790 00:39:52,680 --> 00:39:55,479 Speaker 15: If you look at the most recent reports that try 791 00:39:55,480 --> 00:39:58,200 Speaker 15: to factor in what the effect might be going forward, 792 00:39:58,719 --> 00:40:01,280 Speaker 15: they would indicate that can Census, which at the moment 793 00:40:01,560 --> 00:40:04,440 Speaker 15: is at forty five point five billion in revenue for 794 00:40:04,480 --> 00:40:07,880 Speaker 15: the quarter, probably should be maybe two three billion dollars 795 00:40:08,400 --> 00:40:11,640 Speaker 15: lighter than that, maybe even more so, depending upon how 796 00:40:11,719 --> 00:40:14,880 Speaker 15: you slice and dice that China revenue. So that's something 797 00:40:14,920 --> 00:40:17,120 Speaker 15: that people need to be aware of as they look 798 00:40:17,160 --> 00:40:19,280 Speaker 15: at the numbers when they get reported later today. 799 00:40:19,480 --> 00:40:22,520 Speaker 2: I think the word I keep seeing is noisy. So 800 00:40:22,719 --> 00:40:25,759 Speaker 2: as investors and you and I and ED try to 801 00:40:25,800 --> 00:40:29,239 Speaker 2: weave ourselves through what the numbers actually say. What is 802 00:40:29,280 --> 00:40:31,720 Speaker 2: it that Jensen and Colllect actually have to say. 803 00:40:32,680 --> 00:40:35,719 Speaker 15: Yeah, I mean, noisy is the right way to look 804 00:40:35,760 --> 00:40:38,279 Speaker 15: at it. I mean there are those out there that saying, hey, look, 805 00:40:39,080 --> 00:40:41,880 Speaker 15: we shouldn't be over indexing on this because guess what 806 00:40:42,000 --> 00:40:45,239 Speaker 15: in video has so much fundamental demand. If it just 807 00:40:45,280 --> 00:40:48,279 Speaker 15: increases production of other chips for other markets, and these 808 00:40:48,280 --> 00:40:51,080 Speaker 15: are more expensive chips, we can more than make up 809 00:40:51,080 --> 00:40:54,200 Speaker 15: for this. So there is kind of an ongoing debate. 810 00:40:54,640 --> 00:40:57,920 Speaker 15: That debate, as we've just established, is not resulting in 811 00:40:57,960 --> 00:41:00,680 Speaker 15: a lot of clarity in terms of firm XPS. 812 00:41:01,200 --> 00:41:03,839 Speaker 3: Jensen is going to talk about all of the industries 813 00:41:03,920 --> 00:41:09,560 Speaker 3: that benefit from invidious technology, robotics, healthcare, the end result. 814 00:41:09,200 --> 00:41:10,840 Speaker 4: Of large language model development. 815 00:41:11,160 --> 00:41:13,200 Speaker 3: But in the quarter gone he flew around the world 816 00:41:13,239 --> 00:41:15,520 Speaker 3: and did a lot of deals, the Middle East of 817 00:41:15,600 --> 00:41:17,719 Speaker 3: the Golf being one example. Do we expect him to 818 00:41:17,800 --> 00:41:20,000 Speaker 3: kind of give us a real sense of how much 819 00:41:20,040 --> 00:41:22,440 Speaker 3: money this company is making from those deals? 820 00:41:22,760 --> 00:41:24,560 Speaker 15: Yeah, I mean a lot of them are sort of 821 00:41:24,600 --> 00:41:30,600 Speaker 15: tentative flash future memorial understanding type arrangements, So it's unlikely 822 00:41:30,760 --> 00:41:33,560 Speaker 15: that he'll give those as a specific target, and he 823 00:41:33,680 --> 00:41:36,560 Speaker 15: tends to not want to do that for obvious reasons, 824 00:41:37,760 --> 00:41:40,759 Speaker 15: but you're right, he'll talk in broad terms about the 825 00:41:40,800 --> 00:41:44,600 Speaker 15: future of AI and how that's going to increase general 826 00:41:44,640 --> 00:41:48,320 Speaker 15: demand for his products going forward. The near term is 827 00:41:48,360 --> 00:41:50,120 Speaker 15: probably going to be a little bit more choppy. 828 00:41:50,680 --> 00:41:54,120 Speaker 2: Bloomberg's and King's going to be busy. Thank you. Tuning 829 00:41:54,200 --> 00:41:56,640 Speaker 2: later today, of course, there's a special edition of BlueBag 830 00:41:56,640 --> 00:41:59,640 Speaker 2: Technology and breaking down in videos earnings with at CEO 831 00:42:00,040 --> 00:42:02,960 Speaker 2: Josan One. Tune in six thirty pm Eastern three thirty 832 00:42:03,040 --> 00:42:05,920 Speaker 2: pm specific and that does it for this edition of 833 00:42:05,920 --> 00:42:07,040 Speaker 2: bloomag Technology ED. 834 00:42:07,680 --> 00:42:09,360 Speaker 4: Yeah, don't forget to check out the podcast. 835 00:42:09,440 --> 00:42:11,040 Speaker 3: You can find it on the terminal as well as 836 00:42:11,040 --> 00:42:14,800 Speaker 3: online on Apple, Spotify, and iHeart. From New York City 837 00:42:14,840 --> 00:42:26,440 Speaker 3: and San Francisco, this is Bloomberg Technology